In a reversal of this week’s technical pattern, the small-caps showed strength while the overall market lagged. Volatility also stayed elevated after trading to a higher high but the lower close is helping to confirm this week’s consolidation pattern.
The Russell 2000 climbed 0.2% after testing a second half high of 1,582. Prior and lower resistance at 1,585-1,600 and the 200-day moving average held with a close above the latter signaling a return of momentum.
The Nasdaq edged up 0.1% following the intraday push to 7,562. Lower resistance at 7,550-7,600 was cleared and held with continued closes above the latter being a bullish signal for continued strength.
The S&P 500 dipped 0.1% after testing a morning low of 2,775. Current and upper support at 2,775-2,750 held on the 2nd-straight lower low with a close below the latter and the 200-day moving average being a bearish development.
The Dow was down 0.3% following morning pullback to 25,877. Fresh and upper support at 26,000-25,750 failed to hold for the 1st time in 4 sessions held with a close below the latter signaling lower lows.
Energy, Industrials and Financials were all up 0.4% while Utilities nudged up 0.1%.
Communications Services and Healthcare showed the most sector weakness after falling 0.5%. Real Estate declined 0.3%.
I hope this helps you prepare for the trading day. Make it a great one!